Income Protection

Every year, around one million people in the United Kingdom find themselves unable to work due to an illness or injury. Unfortunately, many people think that, if you are off ill on a long-term basis, the government will look after you, or your employer will take care of you.

For most people, this is simply not the case.

Indeed, it could be argued that the one protection policy every working adult should consider is actually the one that most people don’t have – income protection insurance.

What it is

Income protection insurance – which is sometimes known as permanent health insurance – is a long-term insurance policy that’s designed to help you if you can’t work because you’re ill or injured.

Income protection insurance ensures that you continue to receive a regular income until you retire or are able to return to work.

It’s not the same as critical illness insurance, which pays out a one-off lump sum if you have a specific serious illness, nor is it the same as short-term income protection, which also pays out a monthly sum related to your income, but only for a limited period of time (usually between one to two years). It also tends to cover fewer illnesses or situations.

At Crawford Mulholland, we find that this type of insurance appeals to clients aged between 25 and 50, who have an income to protect, and is particularly popular with higher earners and self-employed people.